Federal Financial Markets Service head Vladimir Milovidov (right) and Transportation Minister Igor Levitin know that the losses of 2008 are unimportant in comparison with the profits of 2020.
Photo: Vasily Shaposhnikov
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Int'l Fin. Center Plans Still a Go
The government presidium yesterday approved a Federal Financial Markets Service concept for the development of the financial market through 2020. In spite of the crash of autumn 2008, plans remain at least nominally to create an international financial center in Moscow in 2009 and 2010 based on the best world models. Thus, the FFMS proposed yesterday that the Deposit Insurance Agency insure the public’s money against broker fraud. The draft law “On Combating Illegal Use of Insider Information and Market Manipulation” was also approved.
The current financial crisis was not reflected in the FFMS’s concept. It foresees the capitalization of public companies rising from 32.3 trillion rubles at the beginning of this year to 173 trillion rubles at the end of 2020, the volume of stocks traded on the market from 31.4 trillion to 240 trillion and the value of corporate bonds in circulation from 1.2 trillion rubles to 19 trillion rubles. No exchange rate was projected for the ruble of 2020.
The current crisis did influence the discussion of the document. FFMS head Vladimir Milovidov stated cautiously that “If the deadlines for the establishment of the center are considered points of the strategy, the financial center can be nominally created in 2009-2010.” He called the current situation “a unique opportunity.” The issue will be discussed further based on material provided by the Finance Ministry. The final decision on insuring investors’ money against broker fraud will be made by June 1, 2009. The government will decide on allowing investment banks access to refinancing by the Central Bank at the beginning of next year.
www.kommersant.com
All the Article in Russian as of Dec. 02, 2008
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